Brarin Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:

	Sales are budgeted at $310,000 for November, $320,000 for December, and $320,000 for January.
	Collections are expected to be 80% in the month of sale, 19% in the month following the sale, and 1% uncollectible.
	The cost of goods sold is 70% of sales.
	The company would like to maintain ending merchandise inventories equal to 70% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
	Other monthly expenses to be paid in cash are $21,600.
	Monthly depreciation is $18,800.
	Ignore taxes.

Balance Sheet
October 31
Assets
Cash	$42,000
Accounts receivable, net of allowance for uncollectible accounts	90,000
Merchandise inventory	151,900
Property, plant and equipment, net of $618,000 accumulated depreciation	1,240,000
Total assets	$1,523,900
Liabilities and Stockholders' Equity
Accounts payable	$174,150
Common stock	980,000
Retained earnings	369,750
Total liabilities and stockholders' equity	$1,523,900

Expected cash collections in December are:

$256,000

$320,000

$58,900

$314,900

PLEASE SHOW STEPS THANK YOU